1. Project Management (x470)
Module 02 : Knowing What the Project Is, Part 1

2. Class Road Map Session 4 Session 5 Foundational Concepts
Knowing WHAT the Project Is
Session 4
Knowing WHERE the Project Is
Session 5
Closure, Group Presentation, Advance Topics

3. Knowing WHAT the Project Is
Session 2 Agenda
Short Quiz 1
Questions / Review - Session 1 concepts
Short Quiz
Knowing WHAT the Project Is
Scope
Schedule
Time
Team Sessions
Scope Statement
WBS

4. Monitoring and Control
Project Genesis
Monitoring and Control
Project Drivers
Problems
Opportunities
Business requirements
Project Approval
Formal “Go” decision
Project Charter
Project Manager assigned
Project Plan
Clear and approved project or phase definition
Stakeholders
Scope (Deliverables)
Schedule
Cost
Knowing WHAT The Project Is

5. Project Approval (Initiation) Challenges
No formal project approval (initiation) process
Unrealistic expectations and assumptions
Timing of Project Manager engagement
Degree of accuracy for project and product documents
Speed vs Accuracy vs Change Control culture
Functional Areas’ Concern: Spending precious resources’ time on projects that will be disapproved

6. Project Approval “Monitor & Control” Aspects
Project documentation intensity / rigor. Factors:
Duration
Cost
Project risk
Priority / importance
Project classification
Small, Medium, Large
Standard, Light, Tracking
“Project” definition
Projects or investments
Project approval process
Project classification
Strategy alignment
Functional group
Others

7. Knowing What the Project Is: Planning Fundamentals
If project deliverables are clear, much of the work can be pre-planned (Linear Project Life Cycle approach)
If project deliverables are not clear, initial work should focus on a set of deliverables that will either provide clarity in the scope or are pre-agreed upon (Iterative, Adaptive, Extreme Project Life Cycle approaches)
The more uncertain the deliverables, the greater the need is for frequent “validation cycles”
Do detailed planning only up to the next point of knowledge
“Failing to plan is planning to fail.” - Harold Kerzner

8. Project Life Cycle Approaches
Unclear
Q4: Unlikely Situation
Solution looking for a problem
Q3: Extreme Approach
Nothing about the project is certain
Product is accepted after some iterations or pulls plug
R & D
GOAL
Q1: Linear Approach
Low complexity
Well understood technology
Low risk
Completed similar project
Q2: Adaptive / Iterative Approach
Product development and process improvement
Production prototype development
Clear
Unclear
Clear
SOLUTION / REQUIREMENTS

9. Lifecycle Approaches Uncertainty & Complexity
UNCLEAR
Extreme
UNCERTAINTY & COMPLEXITY INCREASES
GOAL
Linear
Iterative / Adaptive
CLEAR
CLEAR
UNCLEAR
SOLUTION & REQUIREMENTS

10. Adaptive / Iterative Life Cycle Model
High Level Scope
Cycle Scope
Cycle Plan
Cycle Execute
Cycle Close
Post Cycle Review
Next Cycle?
Close Project

11. Fast Tracking & Rolling Wave Planning
practice of overlapping phases
a.k.a concurrent engineering
Phase 1
Phase 2
Phase n
Rolling wave planning – progressive detailing of the project plan that indicates iterative and ongoing nature of planning. Near-term deliverables identified at a low-level view of detail, long-term deliverables identified at a high-level view of detail (Iterative, Adaptive, Extreme Life Cycle Approaches)

12. Knowing What the Project Is: Project Planning
Scope
Objective: Identify all the work required, and only the work required, to complete the project successfully
Deliverables: (1) Scope Statement (2) Work Breakdown Structure
Schedule
Objective: Determine the time required to meet the project needs
Deliverables: (1) Project Schedule (2) Project Milestone
Cost
Objective: Identify the funding needed to meet project goals/deliverables
Deliverable: Project Baseline
Stakeholder Management

13. Knowing What the Project Is: Scope Planning Steps
Objective: Identify all the work required, and only the work required, to complete the project successfully
Stakeholder Register
Project Charter
Collect Requirements
Product Needs
Project Mgm’t Needs
What should be the main concern in defining a project initially?
Should we be too concerned about the schedule and cost when defining the project scope?
Define Scope
Create WBS
Scope Statement
Work Breakdown Structure
Validate Scope
Approved Scope Documents

14. Knowing What the Project Is: Project Scope Statement
Product scope description
Characteristic of the product that the project will produce
Project life cycle approach
Deliverables
List of sub-products whose full and satisfactory delivery marks project completion. Usually includes milestone deliverables.
Product acceptance criteria
Successful completion metrics
Project exclusions
Project assumptions and constraints
Sponsor approval

15. Knowing What the Project Is: Assumptions, Constraints
Factors that are considered to be true, real, or certain for planning purposes
Generally involves a degree of risk
Constraints
Factors that limit the project team’s options

16. Team Work Use the workbook template.
Draft a Scope Statement for your project (30 minutes)
Use the workbook template.

17. Knowing What the Project Is: The Work Breakdown Structure
Collect Requirements
Define Scope
Create WBS
Validate Scope

18. Knowing What the Project Is: Decomposition
Definition:
Steps:
Subdivision of major project deliverables or sub-deliverables into smaller, more manageable components until the deliverables are defined in sufficient detail to support development of project activities (planning, executing, etc..)
Identify major project deliverables
Decide if adequate cost and duration estimate can be made at this level of detail for each deliverable
Identify constituent components of the deliverable if necessary
Verify correctness of decomposition (necessity, definition, cost, duration, responsibility)

19. Knowing What the Project Is: Work Breakdown Structure
A deliverable oriented grouping of project components that organizes and defines the total scope of the project
Defines products, not tasks
Can be developed using a top-down or bottom-up approach
Can be hardware-related, function- related, life cycle-related or a combination
Foundation of all planning!

20. Knowing What the Project Is: Work Package
Lowest level deliverable in a WBS
Work effort guideline - 80 to 150 hours
Ownership assigned at this level
Tasks are identified under this level
Task size guideline - not to exceed 80 hours; less for high risk project

21. Knowing What the Project Is: WBS Template
Project Name
Phase 1
Phase 2
Phase ‘n’
Deliverable 1
Product Process
Deliverable 2
Project Management Process
Deliverable N-1
Deliverable N

22. Knowing What the Project Is: Scope Baseline
Scope Statement
WBS
Other Reasons:
No attempt made to systemize the planning process
Planning was performed by a planning group
No one knows the ultimate objectives
No one knows the major milestone dates
Project estimates are best guesses and are not based on any standards, or history
No one bothered to see if there would be personnel available with the necessary skills
People not working towards the same specs
Constant shuffle of personnel in and out of the project with little regard for the schedule
Change of management and their objectives.
Change(s) in the macro environment

23. Knowing What the Project Is: Requirements Challenges
May not be fully known at the start of a project
May come from multiple sources / groups
May come at various levels of details
Some stakeholders may not be known initially
May be “wants” and not “needs”
Wants - usually more associated with a solution
Needs - usually more associated with the underlying problem
May conflict with each other
May feed off each other
Usually requires iterations and trade-offs to finalize
May change

24. Project Monitoring and Control: Project Flexibility Matrix
High
Medium
Low
Scope
Time
Cost

25. Knowing What the Project Is: Scope Determination Summary
Make sure project stakeholders have all been identified
Functional groups that will have a deliverable on the project should be represented on the project team
WBS should represent only the work needed to complete the project successfully
Validate the Scope baseline documents with the project sponsor or approving authority
Process iteration is the norm

26. Team Work (60 minutes)
Construct a life-cycle based WBS for your project
Use a Post-It-Note sheet for each deliverable
Concentrate on product deliverables but add project management process deliverable that have already been discussed in class

27. Knowing What the Project Is: Schedule Planning Steps
Objective: Determine the time required to meet the project needs
Define the Tasks Comprising the Work Package
Sequence the Tasks or / and Deliverables
Estimate the Tasks or Deliverable Resource
Estimate the Tasks or Deliverable Duration
Develop the Schedule

28. Knowing What the Project Is: Project Schedule
Should include planned start and finish dates for each deliverable / activity.
Tabular form
Graphical form
Bar / Gantt Chart
Milestone chart
Network diagrams

29. Knowing What the Project Is: Bar (Gantt) Charts

30. Knowing What the Project Is: Milestone Chart

31. Knowing What the Project Is: Task Sequencing
Objective: Identify interdependencies among tasks / deliverables
Define the Tasks Comprising the Work Package
Sequence the Tasks or / and Deliverables
Estimate the Tasks or Deliverable Resource
Primary Deliverable: Project Schedule Network Diagram
Estimate the Tasks or Deliverable Duration
Develop the Schedule

32. Knowing What the Project Is: Activity Dependency
Mandatory – inherent in the nature of the work being done, a.k.a. hard logic
Discretionary – defined by the project team, a.k.a. preferred logic, preferential logic, soft logic
External – involve relationships between project activities and non-project activities

33. Knowing What the Project Is: Scheduling Techniques
Gantt or bar charts
Milestone charts
Networks (show interdependencies)
Precedence Diagram Method (PDM)
Arrow Diagram Method (ADM)

34. Knowing What the Project Is: Precedence Diagramming Method
Method of constructing network diagram that uses boxes (nodes) to represent activities and connects them with arrows to show dependencies
a.k.a. Activity On Node (AON)

35. Knowing What the Project Is: Precedence Relationships (1 of 2)
FINISH
START
Eqpt Rcvd
Eqpt Inspected
FINISH-TO-START
START
Wall Preparation
START-TO-START
START
Wallpapering
START
Production Burn-In
START-TO-FINISH
FINISH
Operational Acceptance

36. Knowing What the Project Is: Precedence Relationships (2 of 2)
FINISH
FINISH
Wall Preparation
FINISH-TO-FINISH
Wallpapering
Network Requirements
PERCENT COMPLETE
50 %
20 %
Network Design

37. Knowing What the Project Is: Node Activity Information
EARLY START
01/06/12
TIME DURATION
2 WORK-WEEKS
EARLY FINISH
14/06/12
ACTIVITY 4
$250,000
SLACK
COST/PROFIT
CENTER 2810
LATE FINISH
28/06/12
LATE START
15/06/12

38. Knowing What the Project Is: Precedence Network
Early Start
Duration
Early Finish B
Late Start
Slack
Late Finish
Early Start
Duration
Early Finish D
Late Start
Slack
Late Finish
Early Start
Duration
Early Finish E
Late Start
Slack
Late Finish
Early Start
Duration
Early Finish F
Late Start
Slack
Late Finish
Early Start
Duration
Early Finish A
Late Start
Slack
Late Finish
Activity
Preceding Activity A B C D E
C, D F
Early Start
Duration
Early Finish C
Late Start
Slack
Late Finish

39. Knowing What the Project Is: Resource Estimating
Objective: Estimate the type and quantities of materials, people, equipment or supplies required to complete each task or deliverable
Primary Deliverable: Task / deliverable resource requirements
Secondary Deliverable: Resource Breakdown Structure
Define the Tasks Comprising the Work Package
Sequence the Tasks or / and Deliverables
Estimate the Tasks or Deliverable Resource
Primary Deliverable: Project Schedule Network Diagram
Estimate the Tasks or Deliverable Duration
Develop the Schedule

40. Knowing What the Project Is: Resource Considerations
People, material, equipment, supplies
Time / Skill and other trade offs
Resource requirements including timing
Resource Organizational Matrix

41. Knowing What the Project Is: Duration Estimating
Objective: Determine the work period required to complete the task or deliverable with the estimated resources
Primary Deliverable: Task / deliverable resource requirements
Secondary Deliverable: Resource Breakdown Structure
Define the Tasks Comprising the Work Package
Sequence the Tasks or / and Deliverables
Estimate the Tasks or Deliverables Resource
Primary Deliverable: Project Schedule Network Diagram
Estimate the Tasks or Deliverables Durations
Primary Deliverable: Task / deliverable duration estimate
Develop the Schedule

42. Knowing What the Project Is: Duration Estimating Techniques
Expert judgment
Analogous estimating
Parametric estimating
Three-point estimating
Reserve time (contingency)

43. Knowing What the Project Is: Analogous Estimating
Use actual duration of a previous similar activity as basis to estimate duration of the future activity
Approximate (rule of thumb) estimate
Made without any detailed engineering data
A.k.a “Top-down estimating”

44. Knowing What the Project Is: Parametric Estimating
Quantities to be performed for each work category defined by the engineering/design effort multiplied by the productivity unit rate
Example: No. of drawings x no. of hours per drawing

45. Knowing What the Project Is: Three-Point Estimating
O - Optimistic completion time estimate
M – Most likely completion time estimate
P – Pessimistic completion time estimate
Task Duration = (O+4M+P)/6

46. Knowing WHAT the Project Is
Session 3 Agenda
Short Quiz 1
Questions / Review - Session 2 concepts
Short Quiz
Knowing WHAT the Project Is
Time (Critical Path Calculations)
Cost
Team Sessions
Project Schedule
Cost Baseline

47. Knowing What the Project Is: Schedule Development
Objective: Create project schedule based on activity/deliverable sequences, resource and duration estimates, and schedule constraints
Primary Deliverable: Task / deliverable resource requirements
Secondary Deliverable: Resource Breakdown Structure
Define the Tasks Comprising the Work Package
Sequence the Tasks or / and Deliverables
Estimate the Tasks or Deliverable Resource
Primary Deliverable: Project Schedule Network Diagram
Estimate the Tasks or Deliverable Duration
Primary Deliverable: Task / deliverable duration estimate
Primary Deliverable:
Project Schedule Baseline
Secondary Deliverable:
Milestone Schedule
Develop the Schedule

48. Knowing What the Project Is: Critical Path and Float
Longest time span through the total system of activities / events
Delay in any activity / task in the critical path delays the whole project
Improvement in total project time means reducing time for activities / events in the critical path
Slack Time (Float) - Time differential between the scheduled completion date and the required date to meet critical path.

49. Knowing What the Project Is: Critical Path Calculation
Forward Pass
Calculates early start and early finish dates
Project end date
Longest path
Backward Pass
Calculates late start and late finish dates
Task / project float
Identifies tasks in critical path
Determined by doing forward and backward pass calculations

50. Knowing What the Project Is: Forward Pass
The first predecessor task(s) have an Early Start (ES) of zero
Early Finish (EF) dates are calculated by adding the task duration (TD) to the earliest date (ES) a task can start
The EF date of the predecessor becomes the ES date for the successor
When there are multiple predecessors, ES is the larger of the EFs for the task

51. Knowing What the Project Is: Backward Pass
Late Start (LS) and Late Finish (LF) dates are calculated starting from the end of the project
LS is calculated by subtracting the TD from the LF of the task
LS for the successor task becomes the LF for the predecessor task
When there are multiple successors, LF is the smaller of the LSs

52. Knowing What the Project Is: Critical Path and Float
Task Float = Late Finish – Early Finish
Those tasks with zero float are on the critical path

53. Critical Path Exercises
Refer to your PM Workbook.

54. Knowing What the Project Is: Schedule Development Considerations
Life Cycle Approach
Constraints
Imposed dates on activities (start/finish)
Key events / major milestones
Leads and lags: dependency relationship among activities
Schedule compression
Crashing
Fast Tracking

55. Adaptive / Iterative Life Cycle Model
High Level Scope
Cycle Scope
Cycle Plan
Cycle Execute
Cycle Close
Post Cycle Review
Next Cycle?
Close Project

56. Team Work
Determine the Schedule for a phase of your project (20 minutes)

57. The Budget Trap

58. Knowing What the Project Is: Cost Planning Steps
Objective: Identify the funding needed to meet project goals / deliverables.
Estimate Cost
WBS
Resource Plan
Project Schedule
Work Package cost estimate
Determine Budget
Project budget estimate
Cost Baseline

59. Knowing What the Project Is: Cost Estimating Techniques
Expert judgment
Analogous estimating
Parametric estimating
Three-point estimating
“Bottom-Up” Estimating
Reserve Analysis (contingency)

60. Knowing What the Project Is: Analogous Estimating
Use actual cost of a previous similar project to estimate cost of current project
Approximate (rule of thumb) estimate
Made without any detailed engineering data
Top-down estimating
Accuracy +- 15%

61. Knowing What the Project Is: Parametric Modeling
Use project parameter in a mathematical model to predict project cost
Made without any detailed engineering data
Order of magnitude estimate
May use past experience
Accuracy +- 35% within the scope of the project
Example: construction cost per square foot
Examples:
Regression Analysis (Scatter diagram)
Learning Curve

62. Knowing What the Project Is: Bottom-Up Estimating
Cost estimate of WBS work packages rolled up to a project total
Definitive/detailed estimate
Prepared from well-defined engineering data, vendor quotes, unit prices, etc.
Accuracy +- 5%

63. Knowing What the Project Is: Cost Baseline
Time-phased budget for measuring, monitoring and controlling overall project cost performance
Question: Should you accept project budget (and schedule) from management without the benefit of cost processes covered?
Cumulative Amount
Time

64. Knowing What the Project Is: Project Crashing Costs
ALL ACTIVITIES CRASHED
CRASH B
160,000
150,000
CRASH E
140,000
CRASH F
PROGRAM COST, $
CRASH A
130,000
NORMAL OPERATIONS
120,000
110,000 10 12 14 16 18 20 22 24
PROJECT COMPLETION TIME, WEEKS

65. Knowing What the Project Is: Current Costing Practice
Shows monthly cash flow
Identifies capitalized vs. operating

66. Knowing What the Project Is: Planning Best Practices Summary
Determine appropriate project life cycle approach
Use Scope Statement / WBS to baseline project scope
Develop a project schedule to baseline project time
Develop a cost baseline
Focus is more on “knowing what the project is”
Partner with line managers to get agreement on scope, time and cost baselines
Change control process should be in place as soon as possible
Validate progressive elaboration outputs

67. Team Work
Determine cost baseline for a phase of your project (40 minutes)